WARRANTY

9 Months Ended

Mar. 31, 2019

Product Warranties Disclosures [Abstract]

WARRANTY

NOTE 4. WARRANTY

The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying consolidated balance sheets. As of March 31, 2019 and June 30, 2018, the warranty reserve amounted to $136,000 and $107,000, respectively. Warranty expenses are included in cost of sales in the accompanying consolidated statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates, and are included in current period warranty expense. Warranty expense relating to new product sales and changes to estimates for the three months ended March 31, 2019 and 2018 was $52,000 and $8,000, respectively, and for the nine months ended March 31, 2019 and 2018 was $82,000 and $36,000, respectively.

Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2019 and 2018 are as follows (in thousands):

	As of and for the Three Months Ended March 31,
	2019			2018
Beginning balance	$	99		$	150
Accruals during the period		39			24
Changes in estimates of prior period warranty accruals		13			(16	)
Warranty amortization		(15	)		(21	)
Ending balance	$	136		$	137

	As of and for the Nine Months Ended March 31,
	2019			2018
Beginning balance	$	107		$	159
Accruals during the period		93			76
Changes in estimates of prior period warranty accruals		(11	)		(40	)
Warranty amortization		(53	)		(58	)
Ending balance	$	136		$	137